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Social Contribution Activities
Special Story 3Disaster Relief for Flooding in Chile

Early on Wednesday, March 25, 2015, a front of bad weather affected the north-central region of Chile, resulting in heavy rainfall in desert areas, overflowing rivers, landslides and severe flooding in cities and towns. That same day, the president of Chile declared a state of catastrophe and a health alert for three northern regions of the country, affecting a population of roughly 1,750,000 people.
Komatsu Cummins Chile Ltda. (KCC) responded to the situation and decided to execute its Disaster Relief Program, the activities of which the company has been continuing, as of June 2015. Here we report from an operational point of view on how these activities have been planned and implemented.

Cities and towns that typically see little rain suffered severe damage.

Report by:
Josefina Elissetche Correa (Left)
CSR Coordinator, Komatsu Cummins Chile Ltda. (KCC)
Karin Eggers Gutierrez (Right)
CSR Manager, Komatsu Cummins Chile Ltda. (KCC)

KCC's Disaster Relief Response Framework

Step 1: Activation of the Disaster Relief Program

The CSR Department validates authorization of the Disaster Relief Program activation. The criteria supporting this decision is:

  • 1. The state has decreed a “state of catastrophe,” which corresponds to a constitutional “state of exception,” a legal mechanism to deal with situations of political or catastrophic abnormality, in order to safeguard the institutional stability and public order.
    • • The catastrophe affects one of our “influence zones,” in which we have operations where a significant number of employees live or where we have strategic stakeholders.
  • 2. Activating the crisis team is done by the corporate crisis management, general management, the CSR Department and HR management
  • 3. The CSR Department activates the internal “1+1 Campaign,” which aims to contribute to the workers and come to the aid of people affected by the disaster, the donations from which are matched by the company. This campaign is valued by employees, who see them as opportunities for showing solidarity and support to those affected by the disaster.
Framework of KCC's Disaster Relief Program
Framework of KCC's Disaster Relief Program

Step 2: Gemba

After traveling to the affected area, the crisis team forms a local Emergency Committee, consisting of leaders of the business units affected.

Step 3: Implementation of Work Plans

First Stage: Critical Days of the Emergency (First two weeks)
Continuing Operations Internal Focus External Focus
  • - Crisis Manager delivers guidelines related to:
    • 1. Flexibility in working hours for the workers affected
    • 2. Ensuring normal operations of the branch offices in the affected area
    • 3. Monitoring the situation in regard to related tasks and activating emergency plans for operational continuity
  • - HR Department uploads information about the affected workers
  • - HR Department delivers emergency kits with basic necessities
  • - CSR Department organizes volunteer activities
  • - CSR Department activates the Disaster Relief Program, which aims to mitigate the effects of the disaster and bring in humanitarian work through the presence of our machines and our team
  • - Gemba (visits to the site)
  • - CSR Department supports the identified target town of Los Loros, commune of Tierra Amarilla, a zone of influence of our mining client Caserones of Lumina Copper, which is found within the area covered by our social plan with this mining company
  • - CSR Department holds a meeting with leading authorities in the area as well as the affected community. Their short-, medium-, and long-term needs are identified, and roles and responsibilities are described
  • - CSR Top Management validates the plan with deadlines, a budget and commitments that have been agreed upon
  • - Supplies and support are delivered
  • - Machines are made available
  • - Volunteer Days are activated

  • The “Advance Party“ visited the site on March 31, where an employee's house had completely collapsed.

  • In April 4th, the tenth day after the disaster struck, 30 employees were on site and cleaned the houses of employees who had been affected by the disaster.
Second Stage: Second Stage of Disaster Relief
Continuing Operations Internal Focus External Focus
  • - Crisis Manager delivers final report on operational continuity
  • - HR Department implements actions such as: support through the payment of a house for rent to 4 people who had lost their homes or their buildings were declared uninhabitable; a monetary contribution to workers who had lost all their basic appliances; flexible social loans; psychological support; donated money from the 1+1 Campaign
  • - CSR Department organizes volunteer activities
  • - Volunteer Days are held at the Hostel Los Loros, organized by workers of the Caserones Mine and Cerro Negro Norte Mine
  • - Closing milestone: top management visit to Los Loros marks the completion of the “Plan of Work Equipment.” This event starts the normalization step.

  • - On May 13, KCC's top management visited the affected area and talked with local customers and community.

  • Firefighters in an affected area with Jeffrey Dawes, CEO of KCC (center)
Stage 3: Normalization
Continuing Operations Internal Focus External Focus
  • - Conduct employee volunteer activities focusing on children in an evacuation center
  • - Define the roles for full- fledged reconstruction efforts (determine the types of support wanted and the activities to be covered by the state government)
Stage 4: Rebuilding
Continuing Operations Internal Focus External Focus
  • Employee volunteer activities are scheduled (role of the state government is highly significant at this stage)

Step 4: Internal Communication (plan)

An internal communication plan is formulated to make visible what has been done, emphasizing recognition for those who have participated in the various volunteer activities of the Disaster Relief Program.

Step 5: Closing of the Disaster Relief Program/Evaluation

At the end of Disaster Relief Program, the process is evaluated and areas for improvement that can be incorporated in the program are discussed.

What We Gained through the Activities

DATA
Volunteering hours* 2,759.8 hours
Total Volunteers 175 people
Beneficiaries of KCC Support: internal workers, Los Loros and San Antonio communities 2,749 people
Total machinery hours* 3,423 hours
*As of the end of June 2015

Lessons Learned

Involvement of Top Management
  • • Considering the impact from this kind of program (social and reputational impact) in different stakeholders, involvement of top management of the organization is fundamental.
Coordination / Partnerships
  • • Building an action plan for lifting Gemba needs is important, and is done in coordination with other entities and local authorities.
  • • Seek synergies and partnerships for cooperation with other stakeholders (e.g., clients) to thereby enhance the impact.
  • • Having a “rite of closure” with stakeholders is recommended, as this allows senior management to see the support provided by the company and offers an opportunity for the benefitted community to give thanks and also allows senior management to recognize Gemba leaders and volunteers involved in the program. The closing ceremony or “ritual” also helps those affected so that they can move toward the normalization stage.
Communication
  • • Accompanying the program with a plan of internal communication is important, as this makes visible the work that has been done, recognizes the workers who have volunteered, and allows the rest of the company to take pride in what has been undertaken.
Volunteer activities
  • • Besides having equipment at no cost, it is advisable to organize corporate Volunteer Days to enable the assistance to victims of the disaster or have labor for other activities necessary for overcoming the emergency, such as cleaning, sorting aid, and childcare support.
  • • Planning the Volunteer Days according to the requirements raised in Gemba is important, as emergency volunteers not having a task could be counterproductive (as well as the risk to which the volunteer is exposed). According to planning, assigning volunteers in teams of four people is suggested, with one leader in charge to provide a clear roadmap for each team.
  • • Assigning roles for a Volunteer Day is important, as well as having a team (or person) manage and oversee the timely delivery of materials or resources (food, tools, transportation, etc.) required for volunteers to work effectively.
  • • Training the volunteers prior to the intervention in the community is important in areas such as security, crisis intervention, basic principles of community relations, and a psychosocial description of the community that will be attended to. Vaccines are recommended for volunteers before going to the site, and hospitals as well as first aid centers have identified nearby, which are operational.

  • • Always maintain visibility and control over the related costs and expenses.
At the present, June 2015, the area affected by the flood in Northern Chile is gradually returning to normal in terms of basic services: Hospital infrastructure is almost 100% operational, potable water, sewage, and roads are 99% recuperated.
In terms of housing, in the month of June the construction of 664 emergency homes were finalized, of which 66 were built in Los Loros. During this month the Master Reconstruction Plan was announced by the Government. This plan will allow proper coordination of public policies to advance the delivery of definitive housing solutions to families affected by the disaster plan.
Our mining customer Caserones Lumins Copper has continued to support the Town of Los Loros, either through the debris removal; the channeling of the Copiapo River; carrying out work for the reconnection of the drinking water and sewer repair; and the delivery of basic kits (kitchen, dining room, bunk bed with mattresses, dishwasher, gas cylinder, among others) to families affected by the emergency.
July is scheduled to begin a new phase of community work together with our client Caserones, which aims to strengthen local school education in Los Loros.